Absolutely wrong. This was a ruling by a panel of the 9th circuit. It can be overturned in an en banc hearing or by the Supreme Court - and an en banc hearing is plausible if it contradicts previous rulings of the 9th circuit.

Well, I based that on the wording of the ruling itself and the article over at Ars about this, which said the same. I also figured "what about the Supreme Court?", so guess my wonder was a good one.